TMI Blog2022 (10) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the product HTP kirloskar Power Sprayer merit classification under HSN 8424 89 90 and covered under Entry No. 325 of Schedule-111 of Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 and attract GST tax rate 18%. - GUJ/GAAR/R/2022/44, - - - Dated:- 28-9-2022 - MILIND KAVATKAR AND AMIT KUMAR MISHRA, MEMBER Present for the applicant: P. Ghosh (Senior General Manager), Y.D. Davare (AGM), Y.M. Pandya (Senior Officer) Brief Facts M/s Kirloskar Oil Engines Ltd (referred to as the applicant for the sake of brevity) has submitted that it is engaged in manufacturing of Pump Set and Diesel Engine at Rajkot plant and intend to sale. It is submitted that in the GST Tariff Mechanical Sprayer is classified @12% with Tariff Heading 8424 in the Notification No. 11/2017-CT (Rate) dated 28-6-2017 as amended vide Not. No. 6/2018-CT (Rate) dated 25-6-208 at Entry No. I95B. However, agriculture and horticulture sprayer is classified @18% GST. 2. The applicant has submitted the details of the product HTP (Horizontal Triplex Plunger) kirloskar Power Sprayer (Engine Driven): HTP Sprayer - Horizontal Triplex Plunger sprayer is a mechanical pumping system whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g HTP sprayer from importers or domestic manufactures like Aspee, Mumbai and engines from other vendor to manufacture HTP Kirloskar Power Sprayer. The major parts used in manufacture of HTP Sprayer as follows:- Petrol Engine Base frame made of Steel V Pully Power Sprayer etc. 10.1 We have visited the applicant website https:// www. kirIoskaroiIengines.com/products/farm-mechanization/sprayer to know the details about the goods in question and detailed mentioned in the website is re-produced as under :- Kirloskar Farm Mechanization Power Sprayer: High-Performance, Versatile Agriculture Sprayers Kirloskar Farm Mechanization power sprayer is a perfect combination of advance technology, user-friendliness and versatility. The sprayer is ergonomically designed to ensure effective pesticide application in agricultural fields, orchards, tea plantations and vegetable gardens. The gun-type power sprayer aids in uniform spraying, ensuring effective control of pests. Suitable to spray pesticides and insecticides for pest control in Guava, Grapes, Mango, Coconut, Banana, Papaya, Pomegranate and Chikku Properly segregated containers for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8424 89 10 - Painting equipment, including electrostatic-phosphating and powder coating equipment 8424 89 20 --- Industrial bellows 8424 89 90 --- Other 8424 90 00 - Parts 10.5 We refer to Harmonised System of Nomenclature (HSN) which is guiding principal to determine the correct classification of the goods. HSN 8424 is reproduced as under : 8424 MECHANICAL APPLIANCES (WHETHER OR NOT HAND OPERATED) FOR PROJECTING, DISPERSING OR SPRAYING LIQUIDS OR POWDERS; FIRE EXTINGUISHERS. WHETHER OR NOT CHARGED; SPRAY GUNS AND SIMILAR APPLIANCES; STEAM OR SAND BLASTING MACHINES AND SIMILAR JET PROJECTING MACHINES 8424.10 - Fire extinguishers, whether or not charged 8424.20 - Spray guns and similar appliances 8424.30 - Steam or sand blasting machines and similar jet projecting machines - Other appliances : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered under 6 schedules, as under :- (i) 2.5 per cent, in respect of goods specified in Schedule-I, (ii) 6 per cent, in respect of goods specified in Schedule-II, (iii) 9 per cent, in respect of goods specified in Schedule-Ill, (iv) 14 per cent, in respect of goods specified in Schedule-IV, (v) 1.5 per cent, in respect of goods specified in Schedule-V, and (vi) 0.125 per cent, in respect of goods specified in Schedule-VI Further, Explanation (iii) and (iv) of the said Notification reads as under:- (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 10.9 We find that the applicant goods appears at Entry No. 325 in Schedule-Ill of the said notification, on which the applicable rate of GST is 18% (9% SGST + 9% C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rinklers; drip irrigation systems including laterals; mechanical sprayer; nozzles for drip irrigation equipment or nozzles for sprinklers] shall be substituted; 10.13 Further, the following entry has been inserted vide Notification No. 6/2018-Central Tax (Rate), dated 24-1-2018 (effective from 25-1-2018) in Schedule-II of Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 which reads as under : (xiii) after S. No. 195A. and entries relating thereto the following serial number and the entries shall be inserted, namely : S. No. Chapter/ Heading/ Subheading/ Tariff item Description of goods 195B 8424 Sprinklers; drip irrigation system including laterals; mechanical sprayers ; 11. We find that, CBIC vide Circular No. 113/32/2019-GST has issued clarification on Applicable GST rate on Mechanical Sprayer . The relevant para5 is reproduced as under:- 5. Applicability GST Rate on Mechanical Sprayer 5.1 Representation have been received seeking clarification on the scope and applicable GST rate on mechanical sprayers of entr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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